What is the key factor in performing incremental analysis if a company has limited resources?
A)Contribution margin per unit of limited resource
B)The amount of fixed costs per unit
C)Total contribution margin
D)The cost of limited resources

Question

Quizplus · Accepted Answer

When a company has limited resources, the key factor in performing incremental analysis is to determine the contribution margin per unit of the limited resource. By calculating the contribution margin per unit of the limited resource, the company can determine which products or services will generate the highest profit, given the limited amount of resources available. This ensures that the company maximizes its profitability and makes the most efficient use of its limited resources.

What Is the Key Factor in Performing Incremental Analysis If